The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
Major changes to the patent box regime were made by FA 2016 to bring it into line with the outcome of the OECD’s recommendations on tackling harmful tax practices and preferential IP regimes. See the Patent box tax regime ― overview guidance note for details. There are now separate regimes which apply to the calculation of qualifying IP profits for existing entrants to the patent box (the first patent box election is made for an accounting period beginning before 1 July 2016) and for new entrants (broadly, those making their first patent box election for accounting periods beginning on or after 1 July 2016). The rules for calculating the marketing assets return figure which extracts brand value from the calculation of qualifying IP profits under both regimes are very similar. However the rules have been modified to reflect the application to the separate ‘sub-streams’ applicable to new entrants. This is explained in further detail below and legislative references are provided for both existing claimants and new entrants.
There are several steps which must be carried out in order to calculate the amount of qualifying IP profits to which the reduced patent box rate of corporation tax can be applied. The steps are set out in the Calculating relevant IP profits ― existing claimants with no new IP rights guidance note, which should be read in conjunction with this note.
Step 6 requires an adjustment to be made which eliminates the profits generated from the company’s brand and marketing assets, so that only profits generated from the exploitation of qualifying IP benefit from patent box treatment. This adjustment is known as the ‘marketing assets return figure’, which must be deducted from the qualifying residual profit (QRP). The detailed calculations are set out in CTA 2010, ss 357CN–
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Legislative definition of plant and machineryThe general rule allowing capital allowances on plant and machinery is given at CAA 2001, s 11. There is no statutory definition of the term ‘plant and machinery’ but there is confirmation in the legislation on what constitutes a building or a structure
This guidance note provides an overview of the partial exemption de minimis rules. This note should be read in conjunction with the Partial exemption overview guidance note. If a business incurs an insignificant amount of input tax which is associated with exempt supplies (exempt input tax), it may
If the self assessment tax return shows that a repayment is due, the taxpayer can claim a repayment or leave it as a credit on their statement of account.The quickest and safest method is for HMRC to make the payment direct to the taxpayer’s bank or building society account and so they are asked to
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
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